Consider the following cash flows on two mutually exclusive projects:

Year	Project A		Project B
0	$	56,000	$	71,000
1		36,000		35,000
2		31,000		44,000
3		26,000		47,000

The cash flows of Project A are expressed in real terms, whereas those of Project B are expressed in nominal terms. The appropriate nominal discount rate is 12 percent and the inflation rate is 3 percent.

Calculate the NPV for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	NPV
Project A	$
Project B	$

Which project should you choose?

	Project A
	Project B